The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Polperro have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Polperro lease extension. Putting off the costs today simply increases the amount you will ultimately be required to pay to extend the lease.
Leasehold premises in Polperro with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you increased control over the value of your Polperro leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the landlord of her ground floor flat in Polperro, Ashleigh initiated the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was finalised in August 2011. The landlord’s fees were kept to an absolute minimum.
Last month we were e-mailed by Dr J Ramírez , who owned a one bedroom flat in Polperro in November 2012. The question was if we could estimate the price would be to extend the lease by ninety years. Comparative homes in Polperro with 100 year plus lease were valued about £198,400. The average amount of ground rent was £65 billed per annum. The lease expired on 1 July 2084. Having 59 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
Mr and Mrs. F Lefebvre purchased a garden flat in Polperro in March 2010. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative homes in Polperro with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 collected yearly. The lease came to a finish on 15 October 2095. Having 70 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.